Tyson Foods' Sales Rose while Earnings Fell in Fiscal 4Q15
EPS fell by 4.6%
Tyson Foods (TSN) recorded an adjusted EPS (earnings per share) of $0.83 for fiscal 4Q15. EPS fell by 4.6% compared to the same quarter in fiscal 2014. In fiscal 2014, the company reported earnings of $0.87 per share. According to Tyson’s management, the three-year compound annual growth rate for adjusted EPS is 17%. For fiscal 2015, the company reported adjusted EPS of $3.15 per share, a rise of 7% compared to $2.94 EPS in fiscal 2014.
The company has been beating estimates in the first two quarters of fiscal 2015. However, it missed the consensus estimates by 16% in fiscal 3Q15 and missed it by 7.78% even in fiscal 4Q15. The analysts that follow this company are forecasting a rise in earnings this year of 15.6% over last year. Analysts expect earnings growth next year of 8.7% over this year’s forecast earnings. The company projects adjusted EPS to be in the range of $3.50 to $3.65 in fiscal 2016, consistent with the goal of achieving at least 10% annual EPS growth over time.
Peers of Tyson Foods in the industry include Kraft Heinz (KHC), Flowers Foods (FLO), and Pilgrim’s Pride (PPC). They reported EPS of $0.44, $0.21, and $0.53, respectively, in their last reported quarters. The Vanguard Mid-Cap Value ETF (VOE) and the Vanguard Consumer Staples ETF (VDC) invest 0.08% and 0.14%, respectively, in Pilgrim’s Pride stock as of November 24.
Share repurchases
In fiscal 2016, the company plans to increase share repurchases under their share repurchase program. Tyson has 21.1 million shares remaining that are authorized for repurchase as of October 3, 2015. It repurchased ~4.4 million shares for $200 million, excluding shares repurchased to offset dilution from equity compensation plans in the first quarter of fiscal 2016 as of November 20.
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